Adani’s data centre JV seeking second dollar loan in six months
A collaboration between Adani Group and EdgeConneX is currently in discussions with a consortium of international financial institutions to secure up to US$400 million through an offshore loan, marking a potential second financial deal for the company since June.
AdaniConneX Private, a data center provider, intends to utilize the proceeds to support its expansion initiatives in the current year. Sources with knowledge of the situation, who prefer to remain anonymous due to its confidential nature, have indicated that discussions are ongoing regarding a potential five-year loan agreement.
Adani Group representative did not offer any immediate comment.
In June, AdaniConnex secured $213 million in debt financing to facilitate the construction of two data centers, boasting a combined capacity of 67 MW. This endeavor is a pivotal component of the company’s broader strategy, which involves allocating approximately $1.5 billion towards expanding its data center business over the next three years.
AdaniConnex has ambitious plans for the future, as it aims to erect a total of nine data centers and achieve an impressive one-gigawatt capacity by the year 2030. Notably, one of these data centers, boasting a 17 MW capacity, is already fully operational in Chennai, while the construction of others is well underway.
The conglomerate successfully restored investor and lender trust by refuting the harsh accusations of corporate fraud made by US short-seller Hindenburg Research in January of the previous year. According to a report by Bloomberg last month, the conglomerate’s renewable energy division aims to secure a minimum of $2 billion in fresh debt capital in 2024.
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